Paper & Board Industry

Paper & Board Industry
Course: Analysis of Pakistani Industries
Facilitator: Mr. Afaq Ali Khan
By:
Sharjeel Sultan Afridi
Ahsan Iqbal Arafin
Muhammad Haziq Patel
Agenda
History
Types of paper
Paper manufacturing
Paper making processes
Corrugated Packaging
Environmental Impact
Pakistan Paper Sector (Current Scenario)
Production and Cost of Production
Imports
World Scenario
WTO Impact
Problems
Recommendations
History
At the time of partition, there was no paper and
paper board manufacturing unit; all demands
were met through imports.
The first paper making industry in the sub-
continent was set up in Delhi and Lahore in
1956.
Lahore, at that time, had a production capacity
of 500 tons per annum.
Due to ill planned growth, many of the units were
closed in the 80’s and 90’s.
Types of Paper
Kraft paper
Writing and printing paper
White duplex coated
Uncoated board
Chip board
Paper Manufacturing
Raw Materials
65% local grass and wheat straw.
25% based on waste paper.
10% imported pulp.
Other raw materials include bagasse, rice straw
and cotton waste.
Paper Making Processes
There are 3 main procedures for making
paper.
Pulp manufacturing
Bleaching.
Paper manufacturing.
Pulp Manufacturing
This includes a mild chemical pretreatment
of wheat straw in a slightly alkaline sodium
sulphite liquor at temperatures ranging from
160 to 190 degree celcius.
After this, the cooked pulp is washed

thoroughly to get rid of the sodium sulphite.
Bleaching
The bleaching process is used to improve
the pulp brightness.
Chlorine.
Sodium Hypochlorite .
Chlorine Dioxide. Are used as bleaching
agents.
Paper Manufacturing
For the conversion of pulp into a
continuous sheet of paper the bleached
blended pulp together with the filling
materials is passed over a wire with a
series of presses and driers.
Corrugated Packaging
What is Corrugated Packaging?
Corrugated Packaging is a rigid sort of

packaging that is used generally in our
daily lives, named “CARTONS”
Advantages of Corrugated Packaging
Provides efficient marketing.

Helps in weighing, handling and
transportation of products.
Light to carry for Freight companies.
They are recyclable.
Can be easily manufactured in different
sizes.
Disadvantages of Corrugated Packaging
They are not reusable.

They cannot be produced economically on
a small scale.
They are easily damaged by water and
rough handling unless soaked with wax.
Not easily available in the specific sizes.
Plastic Crates and Plastic Bags might
affect the market demand of corrugated
packages
Environmental Impact
- Pulp and Paper industry of Pakistan is
considered to be one of the most
polluting industries
Waste Water
Air Emissions
Solid Waste
Other Health Risks
Waste Water
The major source of waste water is the
cleaning and washing of the pulp
The sewage from the washing stage is
called BLACK LIQUOR, which is highly
polluted stream and contains excessive
Sodium Silicate (NA2So3)
The sewage received after the pulp has
been bleached with chlorine contains very
toxic chemical compounds
Air Emissions
The most significant air emissions are
CHLORINE EMISSIONS from bleaching.
Chlorine is toxic and generally mills have

airy and spacious layout which helps in
mitigating chlorine emissions.
Solid Waste and Land Pollution
Solid wastes from Paper industries include:
Drained fibers, empty bags, cans, rejected
wheat straw and dust from raw material
preparation section.
Solid waste produced is recovered, sorted, and
sold to manufacturers of low quality paper
products.
Improper handling of fuel oil, spills over on the
ground; this leads to groundwater contamination.
Other Health Risks
Excessive noise can cause permanent
hearing loss.
Noise level in the paper machine sections
range from 90-100 dB, which can dull
senses and increase accident rates.
Excessive exposure to dust may cause
irritation to the eyes, asthma and other
respiratory ailments.
Gutta Industry
Most of the pulp and paper mills discharge
their untreated sewage into Barian Canal
which joins River Ravi.
The sewage contains high amount of pulp

and has become a veritable source of raw
material for the manufacturers of low-
grade paperboard (gutta).
Pakistan Paper Sector
There are about 100 units in the organized
and unorganized sectors having a cumulative
installed capacity of 650,000 tons per annum.
The organized sector comprises of 26 paper
manufacturing units with 575,000 tons of
production capacity.
About 70% of the units are located in Punjab,
20% in Sindh and 10% in NWFP.
Contribution to the GDP 0.36%
Employment 100,000
Skilled unskilled labor 30:70

ratio
Total investment Rs. 30 billion
Per capita consumption 3.79 KG

Technology
Low tech 93%
Intermediate 7%
High Tech ---
Source of Machinery: Finland Sweden

Korea
Local production as a percentage of global production:

0.1%
Cost of Production
Cost of Production
Raw Materials
Labor
Fuel & Energy
Overheads
Production of Paper in Pakistan
450
400
350
300
250
Production of Paper
200 in Pakistan (000
tonnes)
150
100
50
0
2002-03 2003-04 2004-05 2005-06
Paper Imports Of Pakistan
Writing and 10,905 tons Rs 481,622
printing paper
Paper and 25,412.23 tons Rs 1,051,957
ordinary Board
Duplex Board 83,119 tons Rs 3,072,403
Wrapping and 39,696 tons Rs 1,282,416

packing paper
News Print 95,221 tons Rs 2,782,516
Specialty 10,738 tons Rs 1,417,262
Pulp 63,167 tons Rs 2,385,892

Percentage Imports of Paper in Pakistan
Country 2001-02 2002-03 2003-04
USA 28.98 51.33 40.49

Canada 31.25 12.15 32.35
Indonesia 0.95
Sweden 15.83 16.98 10.5
Russian Federation 0.26
Others 23.68 18.59 16.66
100 Others
90
80 Russian
70 Federation
60 Sweden
50
40 Indonesia
30
Canada
20
10
USA
0
2001-02 2002-03 2003-04
Paper Machinery Imports
30,000
25,000
20,000
15,000 Machinery (Value in

$000)
10,000
5,000
0
2000 2001 2002 2003 2004
Production of Paper Mills (p.a)
Name of Mills Installed Capacity Production
Packages Limited 85000 81000
Century Paper & Board Mills Ltd. 85000 79000
Paramount Paper & Board Mills 45000 3770
Flying Board & Paper Product 30000 21763
Mandiali Paper & Board Industry 24000 22410
Taj International Ltd. 8500 7060
Olympia Paper & Board Mills 7500 6620
Pioneer Board Mills 6000 5500
Shamsi Paper & Board Mills 6000 4980
Rehman Classica (Pvt) Ltd. 5000 4120

World Scenario
About 300 million tonnes valued at $500
billion worth of paper and paper based
products are manufactured in the world
annually.
Country Consumption (mn
tonnes)
United States 100 mn tonnes
China 50 mn tonnes
India 7 mn tonnes
World forest Distribution
World Literacy Rates
Finland 100%
USA 98%
Canada 97%
Belgium 99%
Denmark 99.9%
Japan 100%
Austria 99%
Germany 99%
Netherlands 98%
Sweden 99%
Literacy Rate Distribution
WTO Impact
Pulp and Paper sector will face stiff competition
with regional economies having comparative
advantage and proximity to Pakistan market like
China, India, Korea, Indonesia, Thailand and
Taiwan under WTO regime.
Various products would become economical to
Pakistani producers.
Implementation of TRIPS (Trade Related
Intellectual Property Rights) and TRIMS (Trade
Related Investment Measures) may have a
negative impact.
Problems
Lack of competitive infrastructure and
technological base.
Economies of Scale.
Non-availability of raw and auxiliary
materials at competitive prices.
Restrictive local demand and competitive
factors for export market.
Tariff and local duties irregularity.
Dumping of cheap products.
Recommendations
The government should enhance
competitiveness by bringing the prices low down
to International prices.
Duty should be reduced on the imported raw
material (including wood pulp, chemicals, waste
paper, plant and machinery).
Development Institutions should be made at
macro level for the Pulp and Paper industry.
An incentive package should be introduced to
revitalize the projects in difficulties.
Recommendations (Contd.)
Arrangements should be made for proper
procurement, storage and supply of the
agricultural crop waste to the industry at
reasonable rates as these can be used as raw
materials.
Bagasse can be used for making newsprint,
which has not been fully explored.
Efforts should be made to attain optimum
capacity utilization by up-gradation of technology
and availability of raw materials at competitive
rates.

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Paper & Board Industry

Course: Analysis of Pakistani Industries

Facilitator: Mr. Afaq Ali Khan

After this, the cooked pulp is washed

Corrugated Packaging is a rigid sort of

Provides efficient marketing.

They are not reusable.

Chlorine is toxic and generally mills have

The sewage contains high amount of pulp

Skilled unskilled labor 30:70

Total investment Rs. 30 billion

Per capita consumption 3.79 KG

High Tech ---

Source of Machinery: Finland Sweden

Local production as a percentage of global production:

Wrapping and 39,696 tons Rs 1,282,416

Specialty 10,738 tons Rs 1,417,262

Pulp 63,167 tons Rs 2,385,892

USA 28.98 51.33 40.49

15,000 Machinery (Value in

Packages Limited 85000 81000

Century Paper & Board Mills Ltd. 85000 79000

Paramount Paper & Board Mills 45000 3770

Flying Board & Paper Product 30000 21763

Mandiali Paper & Board Industry 24000 22410

Taj International Ltd. 8500 7060

Olympia Paper & Board Mills 7500 6620

Pioneer Board Mills 6000 5500

Shamsi Paper & Board Mills 6000 4980

Rehman Classica (Pvt) Ltd. 5000 4120

United States 100 mn tonnes

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